ECNETNews reports that Thryv Holdings, Inc. (NASDAQ: THRY), a prominent provider of software-as-a-service (SaaS) solutions tailored for small and medium-sized businesses (SMBs), has officially signed a definitive agreement to acquire Infusion Software, Inc., known as Keap, in a strategic move valued at $80 million. This acquisition aims to bolster Thryv’s market position in customer relationship management (CRM) and marketing automation, resulting in a combined portfolio of over 100,000 SaaS subscriptions.
Joe Walsh, CEO of Thryv Holdings, emphasized the transformative nature of this acquisition for the company. “The agreement to acquire Keap represents a pivotal moment for Thryv,” Walsh stated. “This acquisition significantly enhances our SaaS business in recurring revenue and profitability by increasing our scale and subscriber base while strengthening our market presence in North America and beyond. The high-quality SMB sales and marketing automations offered by Keap will seamlessly integrate with Thryv’s platform, creating lucrative cross-sell and upsell opportunities and expanding our go-to-market reach through robust channel partnerships.”
Strategic Implications of the Acquisition
This acquisition is aligned with Thryv’s goal to improve its SaaS offerings and broaden its market presence. Keap, which predominantly services SMBs across North America, Europe, and Australia, is expected to add substantial value to Thryv’s portfolio with its subscription-based revenue model and well-established partner channels.
Key highlights of the acquisition include:
- Market Leadership in SMB SaaS: The inclusion of Keap reinforces Thryv’s status as a market leader, providing comprehensive CRM, marketing automation, and productivity solutions.
- Expanded Reach: Keap’s established partnerships and customer base will enhance Thryv’s direct and indirect go-to-market strategies, increasing its influence in North America while promoting growth in Europe and Australia.
- Enhanced Software Roadmap: Keap’s AI-driven marketing automation tools will augment Thryv’s existing offerings, fostering new cross-sell and upsell opportunities.
- Synergy and Profitability: Full integration is projected to yield improved margins and diverse avenues for revenue growth.
In light of the acquisition, Keap expressed optimism regarding the positive effects on its customers and the potential for innovation. “Thryv’s comprehensive suite of solutions for SMBs aligns seamlessly with our vision of aiding businesses in growth through automation and CRM tools,” stated Keap’s leadership. “This business combination will enable us to deliver greater value to our customers, accelerate innovation, and enhance our offerings with Thryv’s extensive resources and expertise.”
Financial Details and Timeline
The acquisition, priced at $80 million, will be executed in cash, subject to customary adjustments. Thryv intends to finance the deal through equity financing and its existing credit facilities.
Keap, which reported $85 million in revenue over the 12 months ending June 30, 2024, is anticipated to significantly improve Thryv’s profitability. The transaction is expected to close in the fourth quarter of 2024, contingent upon meeting standard closing conditions.
